Suning's Digital Plans Will Send Chinese Back To The Countryside

Fifty years after the Cultural Revolution failed, Chinese are now being incentivized to "return to the countryside" to succeed.

Chinese electronics and home appliances retailer Suning will invest CNY5 billion in the Chinese rural market in 2016 to open 1,500 additional self-owned stores and develop 10,000 agent points and authorized service sites.

Suning has already opened 1,011 owned stores in the Chinese rural market. Apart from the new self-owned stores, agent points and authorized service sites, the company plans to launch 200 consumer-friendly sales halls with local features that combine various small merchants selling digital wares. With those moves, the company is expected to bring 100,000 people back to the rural areas to start businesses.

Suning started distribution in the rural e-commerce market two years ago. Prior to this, Suning's chairman Zhang Jindong announced three major development strategies for the rural e-commerce sector. By building channels like self-owned stores and Chinese local-featured halls, Suning aims to promote the industrialization of agriculture in China.

Zhang revealed that in 2016, Suning will further improve its logistics coverage in third- and fourth-tier markets to 87%; enhance its logistics openness to rural enterprises and vendors; and open the distribution channels to introduce farm products to cities.